Which of the Following Is a Disadvantage of a Production

question 73

Multiple Choice

Which of the following is a disadvantage of a production bonus system?

• A) It relies heavily on the Pygmalion effect.
• B) It doesn't encourage high-quality work.
• C) It assumes that money is not an important motivation tool.
• D) It involves excessive behavior modification.

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales over a certain range, such as rent, salaries, and insurance.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are a significant component of its cost.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of activity or volume of production.

Property Taxes

Taxes assessed on real estate by the government, based on the property's value, and used to fund public services.